US Dollar Technical Analysis: Testing Trend-Defining Support
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 11968, 11904, 11853
- Resistance: 12050, 12114, 12166
The Dow Jones FXCM US Dollar continues to stall at trend line support guiding the move higher since early May. A daily close below 11968 (trend line, 23.6% Fibonacci retracement) exposes the 38.2% level at 11904. Alternatively, a push above the 12043-50 area (June 1 high, 23.6% Fib expansion) clears the way for a test of the 38.2% threshold at 12114.
Our long-term fundamental outlook calls for a broadly stronger US Dollar against its major currency counterparts. With that in mind, we are holding long via the Mirror Trader US Dollar currency basket.
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** The Dow Jones FXCM US Dollar Index and the Mirror Trader USD basket are not the same product.
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com